Past performance is not a guarantee or a reliable indicator of future results. All investments
contain risk and may lose value. Investing in the bond market is subject to risks, including market, interest rate, issuer, credit,
inflation risk, and liquidity risk. The value of most bonds and bond strategies are impacted by changes in interest rates. Bonds and bond strategies with
longer durations tend to be more sensitive and volatile than those with shorter durations; bond prices generally fall as interest rates rise, and the
current low interest rate environment increases this risk. Current reductions in bond counterparty capacity may contribute to decreased market liquidity
and increased price volatility. Bond investments may be worth more or less than the original cost when redeemed. Equities may decline in
value due to both real and perceived general market, economic and industry conditions. Currency rates may fluctuate significantly over
short periods of time and may reduce the returns of a portfolio. Commodities contain heightened risk, including market, political,
regulatory and natural conditions, and may not be suitable for all investors. Diversification does not ensure against loss.
The models evaluate securities or securities markets based on certain assumptions concerning the interplay of market factors. Models used may not
adequately take into account certain factors, may not perform as intended, and may result in a decline in the value of your investment, which could be
substantial. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each
investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. Investors should consult their investment
professional prior to making an investment decision.
Hypothetical examples are for illustrative purposes only.
No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results similar to those shown.
Hypothetical or simulated performance results have several inherent limitations. Unlike an actual performance record, simulated results do not represent
actual performance and are generally prepared with the benefit of hindsight. There are frequently sharp differences between simulated performance results
and the actual results subsequently achieved by any particular account, product or strategy. In addition, since trades have not actually been executed,
simulated results cannot account for the impact of certain market risks such as lack of liquidity. There are numerous other factors related to the markets
in general or the implementation of any specific investment strategy, which cannot be fully accounted for in the preparation of simulated results and all
of which can adversely affect actual results.
This material contains the opinions of the author but not necessarily those of PIMCO and such opinions are subject to change without notice. This material
has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security,
strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this
material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO and YOUR GLOBAL INVESTMENT
AUTHORITY are trademarks or registered trademarks of Allianz Asset Management of America L.P. and Pacific Investment Management Company LLC, respectively,
in the United States and throughout the world. ©2015, PIMCO.